Will Surat manage to steal Mumbai's Rs 3 trillion diamond crown?

Will Surat manage to steal Mumbai's Rs 3 trillion diamond crown?

With talks that the BDB, which handles over 60 per cent of the diamond exports from India, may shift base to Surat appears to be heating up, rediff.com tried to find out whether diamond merchants who operate businesses from Mumbai’s sophisticated diamond exchange at the Bandra Kurla Complex are keen to shift to ‘Surat Hira Bazaar’.

Click NEXT to read more....

Image: The Rs 3 trillion diamond industry is growing at 15 per cent per annum.Photographs: Reuters

Will Surat manage to steal Mumbai's Rs 3 trillion diamond crown?

Kaushik Mehta, former chairman, Gems and Jewellery Export Promotion says, “Globally, Mumbai is perceived to be a world-class marketing and diamond export hub with a highly skilled and educated manpower.”

The city has excellent infrastructure in terms of world class airport, five star accommodation along with a robust banking and finance system which makes business viable, as importers from Hong Kong, the US, Belgium and the UAE are frequent visitors to the BDB.”

Will Surat manage to steal Mumbai's Rs 3 trillion diamond crown?

Mehta also points out that diamond trade in Mumbai is controlled by the Jain and Kathiawadi communities.

“Merchants who have been in the business for decades have already established themselves, but dealers who have just started off and are finding it difficult to lease a 200-300 sq feet shop for Rs 200,000-300,000 a month at BDB,, may think of shifting base to Surat,” Mehta said.

Will Surat manage to steal Mumbai's Rs 3 trillion diamond crown?

However, smaller traders and diamond brokers who operate from Malad, Dahisar and Zaveri Bazaar markets say, even they may not shift base in near future as Mumbai's diamond market is of global standard.

“We have to consider many parameters before taking a decision to shift to Surat. Will the new market provide adequate infrastructure for Indian and overseas buyers? Will it be able to establish an effective liason with Mumbai’s BDB?” they question.

Click NEXT to read more...

Image: Employees work inside the polishing department of a diamond processing unit at Surat.Photographs: Arko Datta/Reuters